The GTCO H1 profit drops to n601 billion on fixed income gains

Caury Trust Holding Company Plc (GTCO) recorded a gross profit of the taxes of n601 billion for the half -yearly year closed on 30 June 2025, marking a strong drop compared to the N1 trillions which recorded in the same period of 2024.

Even the profit net of the taxes fell to N449.01 billion, compared to N905.57 billion in the first of 2024.

Despite the decline in profits, the Council approved a provisional dividend of N1.00 per action, keeping the payment declared in the corresponding period of last year.

The dividend will be paid to shareholders in the register from 7 October 2025.

The gross earnings remained resistant above the n1 trillion brands at N1.073 trillion, although they represented a drop of 22.97 percent on an annual basis.

The upper line was supported by a solid growth in income from interest, which increased 71 % to N812.36 billion, equal to 76 % of gross profits compared to 44 % the previous year.

The distribution shows a remarkable movement of the sources of income, the investment income in securities contributed over 35 % of the gross profits to N375 billion, exceeding the contribution of 27 % from loans and progress.

As regards expenses, the costs of interest increased by 43 % on an annual basis to n154 billion, largely from the customer deposits, which have risen by 44 % to n147 billion. However, this represented only 18 % of the income from total interests, keeping the spreads relatively healthy.

Consequently, the income from net interests risen to N632.24 billion, a growth of 29 % from the first half of 2024 on an annual basis.

From the point of view of the budget, GTCO’s growth remained guided by deposits. Customer deposits grew by 19 % to N11,878 trillion, equal to 71 % of the total activities of the group of N16,692 trillion. Loans and progress increased by 21 % to N3,358 trillion, reflecting a moderate credit expansion.

Analysts say that the results reflect resilience but also underline a structural change in the GTCO profit model.

Reacting, Dr. Kemi Adventune, Afrinvest Consulting financial analyst, observed that the dependence on the income of the securities shows that the group is adapting to high -performance opportunities in the fixed income markets, but this raises questions about sustainability.

“The growth of loans is constant but not the main factor, which could limit long -term basic bank revenues.”

Charles Eze, a strategist of the independent market, added: “The drop in profit is significant, but the GTCO spread remain healthy and its balance is strong. The decision of the dividends shows the trust in liquidity. For investors, the gain of the 63 % Ytd actions price reflects the optimism that the bank will bounce once the macroeconomic.”

However, analysts warn that the increase in financing costs and the growth of the income of the slower commissions, especially by the electronic bank, could be the pressure margins in the future.